Have your say: capping bonuses
In case you missed it, here's our earlier article on the notion that fringe elements of the Labour Party want to limit the size of bonuses. "Bad plan", has been the unanimous response so far.
There are claims the Government is contemplating a limit to City workers' earning potential.
The move (intimated in The Times ) follows a slew of disparaging comments on 'obscene' bonuses at the Labour Party conference.
Representatives of the Square Mile's best interests are rushing to man the barricades. One City insider tells us: "If they do this, you'll be left with a huge hole in the centre of London which used to be called the financial services industry."
Deprived of mega-bonuses, Michael Snyder, policy chairman of the City of London, suggests bankers would go elsewhere. "The City of London is the world's leading international financial centre and to keep that primacy it has to attract the world's best talent," he says. "Firms pay what is required to secure that talent - and their shareholders demand it."
And what if bonuses were capped? Banks could take a lead from retailer John Lewis, which has a decree that none of its executives can earn more than 25 times the income of the lowest-paid employee living in London with four children.
Given banks' notorious frugality when it comes to paying cleaning staff, this would put bonuses at roughly 250,000 and no more.
Should bonuses be capped? - Add your comment and let us know what you think.
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